Is DVC worth it?

[crisi]

I know three families/couples who make appx 400-500k/yr or more who have dvc.

Family one goes to DW 2-3 times a year and uses their dvc at BLT to get a grand villa once every three years. Otherwise they pay cash or go to medical conferences and stay at a discount.

Family two has no children. They bought dvc just before their wedding at DW (2009) to house family. They bought 800 points and I think still have them. They always fly out to DW and stay in a dvc resort. They love Disney. Really bummed I couldn't make their wedding bc I was 8 mo pregnant. But I digress.

Couple three is has SSR via resale. They are very frugal despite driving around in a new masarati. Best bang for your buck for the experience is their motto.

Dvc is a great way to save money without paying the deluxe rates. The 500k salary isn't really that high flying. The true rich make multi millions a year, imo

Yep, it isn't an absolute. There are people who make multi millions a year for whom DVC is a good fit. There are others below the threshold of DVC being a good fit if it WERE an absolute, but it works well for them given their financial and vacation priorities. But there IS a sweet spot financially - and at some point, depending on what your financial priorities and vacation priorities are - DVC is no longer a good fit.

 

[supersnoop]

That's why there is a sweet spot. You aren't saving money over values - but the quality difference in DVC is worthwhile to you. Cash guests spend a little more money - but they do get some bonuses - more flexibility in booking and cancellations, the ability to take advantage of specials, daily housekeeping (if you care), concierge availability (if you care, DVC's is really limited to a handful of rooms). If you made $500,000 a year, would DVC be a good deal over being a cash guest in a luxury suite at the Yacht Club? Or would it be similar to how you feel now about the comparison between DVC and offsite or values? As you make more an more money, the incremental value of that dollar is less and less.

You don't become rich by being frivolous with your money. Just because you can afford to pay cash, doesn't mean you should.

 

[DisneyGirlFlorida]

My suggestion would be to sleep on it for a while, possibly a few months. Think about your future plans with your spouse and decide how purchasing DVC fits in. Are you thinking of buying a home, having children, etc? With the wedding, is it financially feasible for you to buy "right now"? Do you realistically see yourself visiting WDW every two years (not just "I want, but I will")?

I would not recommend buying DVC unless you can pay cash. Financing DVC is just not worth it from a financial point of view. As far as the financial savings you get from DVC, that's all relative and in the eyes of the beholder. As others have mentioned, it may not be a cost savings, but rather a convenience. For me, it's the thought that I do not need to pay for my next vacation when I plan to go (after my initial buy in, that is, still waiting on ROFR). For others, it is a savings if they plan accordingly.

I would definitely talk it over with your spouse, read the message boards here, and think about it for a while before deciding one way or another.

 

[dsnydaddy]

As our children grew, it made DVC make more sense for us. We do frequent Disney and cramming all of us in a hotel room is becoming more difficult all the time. We need the extra space and DVC gives me that for a reasonable price. You really have to do a lot of math before you can really decide if DVC is right for you. Accommodations needed, time of the year traveled, frequency of visits all factor into it. But you also need to pay attention to your DVC buy in and Maintenance fees.

Bottom line is that if you are happy with moderate or value accommodations then it is difficult to get DVC to work for you.

If you need more then DVC can be a good way to get the deluxe experience at a reasonable price.

 

[crisi]

You don't become rich by being frivolous with your money. Just because you can afford to pay cash, doesn't mean you should.

So, you think that instead of owning DVC, you should become rich by staying offsite or at values?

Its a matter of degrees.

 

[supersnoop]

So, you think that instead of owning DVC, you should become rich by staying offsite or at values?

Its a matter of degrees.

Of course it is. You put in more time and effort and you save more money. It comes down to the best use of your time and money. Just because you have the money, doesn't make your time any more valuable.

 

[Gryhndmom]

I know three families/couples who make appx 400-500k/yr or more who have dvc.

Family one goes to DW 2-3 times a year and uses their BLT dvc to get a grand villa once every three years. Otherwise they pay cash or go to medical conferences and stay at a discount. They only get regular hotel rooms, no suites, with their cash bookings.

Family two has no children. They bought dvc just before their wedding at DW (2009) to house family. They bought 800 points and I think still have them. They always fly out to DW and stay in a dvc resort. They love Disney. Really bummed I couldn't make their wedding bc I was 8 mo pregnant. But I digress.

Couple three has SSR via resale. They are very frugal despite driving around in a new masarati. Best bang for your buck for the experience is their motto. You would never know they are doing well financially (modest home, etc) but if not for the car (which they leased on impulse and shall be returning to Odysseys in 2 yrs).

Dvc is a great way to save money without paying the deluxe rates. The 500k salary isn't really that high flying. The true rich make multi millions a year, imo

Loved our reply!

DH is retired military and even with a 40% discount at a deluxe resort or staying at shades of green, we found for us DVC was the way to go and bought in 2012. ( lots more space in a 1bdrm villa and of course the DVC discounts in the park!) We wish we had bought sooner as we go about every other year to Disney and even with dues every year we could have saved money by buying DVC sooner.

Agree with other posts that buying DVC can have its pros and cons which each family has to weigh the options. We really like having the extra room even though it is just the two of us. Having housekeeping everyday is not an issue with us since our own housekeeper doesn't come every day at home (sometimes you just want the house to yourself!)

 

[Dean]

I know three families/couples who make appx 400-500k/yr or more who have dvc.

Family one goes to DW 2-3 times a year and uses their BLT dvc to get a grand villa once every three years. Otherwise they pay cash or go to medical conferences and stay at a discount. They only get regular hotel rooms, no suites, with their cash bookings.

Family two has no children. They bought dvc just before their wedding at DW (2009) to house family. They bought 800 points and I think still have them. They always fly out to DW and stay in a dvc resort. They love Disney. Really bummed I couldn't make their wedding bc I was 8 mo pregnant. But I digress.

Couple three has SSR via resale. They are very frugal despite driving around in a new masarati. Best bang for your buck for the experience is their motto. You would never know they are doing well financially (modest home, etc) but if not for the car (which they leased on impulse and shall be returning to Odysseys in 2 yrs).

Dvc is a great way to save money without paying the deluxe rates. The 500k salary isn't really that high flying. The true rich make multi millions a year, imo

I know a number of people who make that much and live month to month as well. But most who make that amount aren't a good candidate for DVC. The other end of the spectrum is really the larger issue, there are MANY, really the majority, who can't afford DVC but still buy in. I realize that without this group the system wouldn't exist but they are literally mortgaging their future.

 

[crisi]

Of course it is. You put in more time and effort and you save more money. It comes down to the best use of your time and money. Just because you have the money, doesn't make your time any more valuable.

Your time is worth a lot more than mine if driving in from Bonnett Creek is making a difference in your DVC ROI.

 

[the3dwizard]

I never would or will calculate the cost of my DVC membership versus visiting WDW as a regular resort stay. The value to us is the experience and the memories a vacation can provide. To us being able to get a 2 bedroom villa with kitchen and washer and dryer at a resort we like to stay at is totally worth it as these little things just elevate the experience. However, if we were going to stay in studios each time I probably would have to think twice about doing it. Plus we have used our points for rooms in London and I banked enough for our first cruise this year. So you don't have to do WDW every year.


Most years we include some family or friends and do often book a rooms for them, (they get the studios ). Being able to share WDW with friends and family have helped to keep the place new and exciting. In fact our oldest son go married at WDW last spring outside of BCV at the pavilion and it was very cool having everything close by.


So IMHO when calculating is it worth it consider the value of some of the little things a membership can provide over a regular resort experience. We bought on the spur of the moment during our 2nd WDW vacation because the first two were so memorable that we knew we would be going back. Fortunately we have not regretted it.

Cheers!

 

[DVC Doctor]

I never would or will calculate the cost of my DVC membership versus visiting WDW as a regular resort stay. The value to us is the experience and the memories a vacation can provide. To us being able to get a 2 bedroom villa with kitchen and washer and dryer at a resort we like to stay at is totally worth it as these little things just elevate the experience.

And that is EXACTLY what Disney (and other timeshare corporations) hope people will think (not that there is anything wrong with that).

Anyone, not just DVC members, can rent a 2 bedroom villa, but obviously it is better to be a member and use points. Speaking of points, that is what Las Vegas does by using chips (they hide the cash value in a derivative).

Your profile indicates you are a member since 2003 at VWL, BCV, and VB. You (financially) probably did very well with WL and BC, but not so good with VB. Now if you got (personal and family and memory) value from all three memberships, then you WON.

In my opinion, before spending $10,000 or more on a 50 year contract (timeshare) it makes perfect sense to make some financial calculations and projections to see if it makes sense or not.

 

[bethy]

The only intangible I haven't seen mentioned so far that really applies to us is that DVC forces us to vacation. Our family really needs that added, outside pressure to use our points and go on vacation. We will likely never bother rent them out and so for us it's use them or lose them and it's worked out great!

 

[the3dwizard]

And that is EXACTLY what Disney (and other timeshare corporations) hope people will think (not that there is anything wrong with that).

Anyone, not just DVC members, can rent a 2 bedroom villa, but obviously it is better to be a member and use points. Speaking of points, that is what Las Vegas does by using chips (they hide the cash value in a derivative).

Your profile indicates you are a member since 2003 at VWL, BCV, and VB. You (financially) probably did very well with WL and BC, but not so good with VB. Now if you got (personal and family and memory) value from all three memberships, then you WON.

In my opinion, before spending $10,000 or more on a 50 year contract (timeshare) it makes perfect sense to make some financial calculations and projections to see if it makes sense or not.

Dang, 2002, copied the wrong image. I'll have to fix that.

Totally valid points, DVC was more of an impluse buy compared to other purchases we have made. If I had understood the program like I do now I am sure things like my home resorts would be different. We bought VB becuase the points were the cheapest and we have made good use of them in WDW as we don't have a problem with booking 7 months out for the time of the year we go. However, the annual dues for VB are much higher so over 40 years or so the cheap points aren't so cheap. Better understanding the dues is one thing we didn't do and that is one area I would advise people to look into.

I think your Vegas chip analogy is good one. Anyway, I bought Disney stock several years ago to hopefully make back my money on us suckers

 

[Dean]

I never would or will calculate the cost of my DVC membership versus visiting WDW as a regular resort stay. The value to us is the experience and the memories a vacation can provide. To us being able to get a 2 bedroom villa with kitchen and washer and dryer at a resort we like to stay at is totally worth it as these little things just elevate the experience. However, if we were going to stay in studios each time I probably would have to think twice about doing it. Plus we have used our points for rooms in London and I banked enough for our first cruise this year. So you don't have to do WDW every year.


Most years we include some family or friends and do often book a rooms for them, (they get the studios ). Being able to share WDW with friends and family have helped to keep the place new and exciting. In fact our oldest son go married at WDW last spring outside of BCV at the pavilion and it was very cool having everything close by.


So IMHO when calculating is it worth it consider the value of some of the little things a membership can provide over a regular resort experience. We bought on the spur of the moment during our 2nd WDW vacation because the first two were so memorable that we knew we would be going back. Fortunately we have not regretted it.

Cheers!

As I just noted on another thread, DVC has to make sense financially for it to be a reasonable purchase. One of the major components can be the added value of space, kitchen, W/D, etc. However, unless DVC saves money and/or adds real value, it makes no sense to buy JUST to be a member of the club though I know some have done so. DVC is a long term commitment and long term risk, one needs to get something more than just an emotional return to make purchasing worthwhile.

 

[Dean Marino]

Wellllll - it is, for US. I bet you see that "US" part a lot .

Our bottom line story - total payback of our upfront cash within 7 years, as compared to hotel room with typical 35% discount thrown in. Yup, did the "time value of money" thing.... but because we bought in at the START of the FED's Interest Rate Starvation Program? We got a better REAL return rate with DVC . (Note - don't want to hear about the Stock Market.... we are retired, and also don't go to Reno).

Now, the details....

1) We refused to buy ANYTHING until Disney came up with a contract, through Disney, homing us at the VWL. We ALWAYS go to the Lodge - have, since 2007, twice per year, eight days per trip. We bought into DVC in June, 2013, AFTER RENTING there (doing a rental tryout is really GOOD advice).

2) NO FINANCING. This one is a KILLER for most folks... and here is where you SERIOUSLY need to get out the EXCEL spreadsheet. Initial CASH investment: $28,000. But if one can do this? One can avoid the killer Financing Rates associated with DVC. That "PAY CASH" approach is going to vary with every family considering DVC - just for US? We had it, it wasn't going to make much in the Banks, and we choked it up. Tracking our progress yearly? I'm STILL glad we did this - in OUR case, we made an effective killing on our money.

3) HOW would I consider this a killing? Again - OUR family. Just two of us, retired, and (THIS IS VERY IMPORTANT!) ... we were going to go to WDW, twice per year, every year, for a total of 16 days.... NO MATTER WHAT. If you are not SURE you are going to go, haven't thrown in a yearly hard budget item for "trips to WDW"? Don't buy into DVC.

So how have we done? Been tracking this every year since we bought in. At the end of 2015, our initial $28K investment will be down to $16K. "Down" is the result of our real historical cost vs the cost of a discounted comparable main hotel room (NOT at rack - at ACTUAL DISCOUNTED PRICE, which is the REAL price).
Projections (which have held up so far with yearly data) indicate break-even in November 2018. "Break Even" means we will have accounted for all yearly dues, plus up front cash, and calculated interest LOST on the up front cash. We will be at "ZERO" - no money saved, none spent. We will be 66 years of age.

After 2018? NOW we actually make money... until 2042 (when we are 90), and the contract dies. Here is the pertinent point: DVC is not a timeshare. DVC is pre-paid lodging with a legal CAP on yearly price increases, with a serious up front capital cost that will result in VASTLY lower costs after about five to seven years. You will make no money with DVC until those up front costs are paid off.... and you will not effectively pay them off unless you are going to GO to WDW on a regular basis ANYWAY.

So, for us? This has been a great deal. But again - that's for US. If there is one take away I would offer? DO NOT FINANCE a DVC contract. Have the cash to invest, or walk away.

 

[Gryhndmom]

Dean Marino love your post ! In regards to the spreadsheet, I Think we might be twins separated at birth except I am not retired yet !. DH and I also did not finance (best way to go if you have the money) so I have also calculated our break even also about 5 year point.